What is the difference between real and nominal gross domestic product. A. Nominal GDP for a given year is measured in dollars of that year, whereas real GDP is measured in dollars of some based year B. Nominal GDP is measured in dollars, whereas real GDP is measured in terms of some consumption commodity, such as tons of coal, available in the con me right now C. Nominal GDP is measured in dollars, whereas real GDP is a comparison to all other nation's production

Question

Meghan Villarreal

Business

19 December, 13:02

What is the difference between real and nominal gross domestic product. A. Nominal GDP for a given year is measured in dollars of that year, whereas real GDP is measured in dollars of some based year B. Nominal GDP is measured in dollars, whereas real GDP is measured in terms of some consumption commodity, such as tons of coal, available in the con me right now C. Nominal GDP is measured in dollars, whereas real GDP is a comparison to all other nation's production

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Kaylynn Stanley · Answer 1

Option A Nominal GDP for a given year is measured in dollars of that year, whereas real GDP is measured in dollars of some based year

Explanation:

The reason is that the nominal GDP includes the affects of inflation of the year whereas Real GDP is inflation excluded amount which means its tells GDP in terms of base year prices. The difference between the nominal GDP and the real GDP is because of inflation which is the only additional thing in the nominal GDP. So the best answer here which gives this explanation is option A.